India Power Corporation Limited

March 2011

Corporate Presentation

Power Scenario in India

India ranks fifth in the world in terms of total installed power generation capacity Electricity demand in India has been growing at CAGR of 7% The country's annual energy production increased from about 190 billion kWH in 1986 to more than 786 billion kWH in 2008 India still remains one of the lowest in terms of per capita consumption of power The total demand for electricity in India is expected to cross 950,000 MW by 2030*
CountrieswithHighestElectricity Generation (BillionKwH) 6000 4000 2000 0 US China Japan Russia India Canada 3953 3446 982 925 835 604

Source : EIA, International Energy Statistics,2009

ElectricityConsumptionpercapita(kWh)
20,000 18,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000

18,359 14,057

2,490
Canada US World

2,560
China

2,346
Brazil

733
India

Source : Position Paper on Power Sector in India, Ministry of Finance & CEA

*Source : The Integrated Energy Policy, Govt. of India

Electricity Demand Consumption Forecast

25.00

Net electricity generation by region, 1990-2035 region (trillion kilowatthours)

30.00 30 00 25.00

Share of world energy consumption

(per cent of world total)

20.00 Historical 15.00 Projections

20.00 4.24 15.00 10.00 5.00 3.30

Historical

Projections

10.00

3.08 1.20 1.55 1.83 2.18

5.00 5 00

0.64 0 64

2.50

3.60

4.10

0 4.50

4.80 4 80

4.90 4 90

5.00 5 00

5.10 5 10

0.00 1990 2000 2005 2010 2015 2025 2035

0.00 1990 1995 2000 2007 2015 2020 2025 2030 2035

Central and South America Middle East and Africa China

Europe and Eurasia India and Other Asia

United States

China

India

Source : EIA, World Energy Outlook

Regulatory reforms to fuel power sector growth

100% FDI permitted in Generation, Transmission & Distribution Policy framework in place:
Electricity Act 2003 and National Electricity Policy 2005 Open access to transmission & distribution Competitive bidding process Central Electricity Regulation Commission to advise Government of India on promoting competition

Incentives:
I Income t h lid f a bl k of 10 years i th fi t 15 years of operation; tax holiday for block f in the first f ti Waiver of capital goods import duties on mega power projects (above 1,000 MW generation capacity)

Independent Regulators:
Central Electricity Regulatory Commission for Central PSUs and inter-State issues Each State has its own Electricity Regulatory Commission.

Power Sector Overview : Generation

INSTALLED GENERATION CAPACITY as on February 2011 Sector Wise Break up Sector State Sector Central Sector Private S t P i t Sector Total MW 82,453 52,713 36,761 36 761 171,927 Percentage 48% 31% 21%
Renewable Energy Sources 10.73% Nuclear 2.78%

Fuel Mix
Thermal 64.75%

Hydro 21.73%

*Source: CEA

Power Sector Opportunities: Generation

Capacity addition of 1,00,000 MW estimated for the XIIth Plan (2012-2017) Investments to the tune of US$ 206 bn expected in power sector over the next 5 years 80% of total capacity addition to be coal based followed by Gas (13%) & Hydro (7%) Nine Ultra Mega Power Projects (UMPP) each of 4000 MW being targeted by the government at a total estimated investments of US$ 3.3 billion (INR 160 billion) Rising Private Sector participation driven by stellar performance in XIth FYP (2007- 2012)
XIth Plan capacity addition targets & achievement
70,000 60,000 50,000

68,504 57,687

34,120 21,447 19,495 20,013

MW

40,000 30,000 20,000 10,000 -

14,889

16,227

Central

State Target

Private Achievement

Total

XIIth plan (2012-2017) to witness 67% of new capacities from private sector*
* Crisil Research

Power Sector Overview : Transmission

Bulk power transmission increased from 3,708 ckm (circuit kilometer) in 1950 to more than 244 521 ckm till Oct10 with advent of 244,521 Oct 10 new & advanced technologies
Growth in Transmission
350,000 300,000 , 250,000 200,000 150,000 100,000 176,743 125,042 146,371 79,455 75,322 115,742 190,351 249,439 316,112 232,414

Transmission substation size increased from 46,621 MVA to 316,112 MVA during the eleventh plan at a CAGR of 45%

50,000 -

52,034 46,621

VI FYP (1980-85)

VII FYP (1985-90)

VIII FYP IX FYP (1992-97) (1997-2002)

XI FYP* X FYP (2002-2007) (2007- 2012)

*Till October 2010

Transmission lines (ckm.)

Sub-Stations (MVA)

Currently St t T C tl State Transmission Utiliti (STU ) i i Utilities (STUs) and Central Transmission Utilities (CTUs) together own almost 98% of transmission network in India.

Source: CEA

Central Bulk Power Transmission (ckm) 765 kV 400kV 3,464 67,337 10,350 5,948 5 948

State 409 29,578 1,20,459 1,504 1 504

JV/Pvt

Total 3,873

4,269 421 782

1,01,184 1,31,230 8,234 8 234

Source: CEA

Private sector participation encouraged after promulgation of Electricity Act, 2003

220kV +/-500kV HVDC Lines

Power Sector Opportunities: Transmission

Power transmission lines estimated to reach 2,93,372 ckm by 2012 and sub-station capacity is estimated to increase by about 41% to 428,000 MVA to address capacity constraints* Investments of US$ 12 bn have been planned at the interstate and intrastate levels to increase the inter interregional transmission capacity for the XIth (2007-2012) Plan period Ambitious target for an integrated National Power Grid in the country by 2012 with* ~ 200,000 MW generation capacities and ~ 37,700 MW of inter-regional power transfer capacity which will be subsequently enhanced to 58,700 MW by 2014-15 Private investment is set to pick up due to increased focus on participation in transmission sector through Joint Venture (JV) Route - 26% to be owned by CTU/STU and the balance by the Joint Venture Partner
(JVP)

Independent Private Transmission Company (IPTC) Route - 100 percent equity owned by the
private entity

Model Transmission Agreement (MTA) - Minimum concession period of 25 yrs Focus on competitive bidding and distance-and-direction based tariff envisaged by the National Tariff Policy to encourage private sector participation

Source: ibef

Power Sector Overview : Distribution

Indias Distribution infrastructure includes more than 6.76 million ckm (circuit kilometer) of lines and 316,000 MVA of distribution transformer capacity Estimated 160 million electricity consumers in India growing at an annual rate of 4.5 %* Distribution lines and capacity growing at an annual average growth rate of around 3% and 7.5 % respectively* Emphasis on regulatory reforms in distribution network identified as key to growth in power sector Franchisee Model State utilities transferring rights to supply, maintain and recover dues to private players Revised R i d APDRP (A (Accelerated P l t d Power D Development l t and Reform Program) provides support and financial incentives for reduction in T&D losses Rationalisation of tariff; industrial tariff progressively reduced whereas t iff f agriculture & other d d h tariff for i lt th categories increased
Source: Indian Infrastructure All India Annual per Capita consumption of Electricity (KwH)
800 700 600 500 400 300 200 100 0

592

612.5

631.5

671.89

717.13

733.54

200304 200405 200506 200607 200708 200809

Source: CEA

Power Sector Opportunities: Distribution

Projected Investment of ~ US$ 78 bn estimated in next five years in transmission & distribution network
Africa
China India LatinAmerica MiddleEast

ElectricityaccessinIndia Electrificationrate(%) Populationwithout Electrification rate (%) Population without electricity(millions) Total Urban Rural

40
99.4 64.5 92.7 89.1

66.8
100.0 93.1 98.7 98.5

22.7
99.0 52.5 70.2 70.6

588.9
8.0 404.5 34.1 21.4 Source: IEA

Rural Electrification
Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) aimed at rural electrification providing focus and funds to rural distribution system

Gradual Decline in T&D and AT&C losses

40 35 30 25 20 15 10 5 0
200203 200304 200405 200506 200607 200708 200809

T&D and AT&C Loss

APDRP emphasises on reducing the T&D losses, bringing it down to ~ 25% in 2008-09 from 32% in 2002-03; Target to bring AT&C losses at the level of ~ 15%

T&Dlosses

AT&CLosses*

Source: CEA

Source: Crisil; CEA, Ministry of Power

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Power Sector Overview : Trading

Power Exchanges Currently two power exchanges(PXs) operational in the country- Indian Energy Exchange (IEX) and Power Exchange India Limited ( g (PXIL) ) Open Access & Trading Capitalising on open access and expansion of interregional transmission capacity , power trading has emerged a key route for short term electricity transaction By the end-February 2009, trading constituted only 3% of total power generation whereas in 2009 October 2010, the percentage of short-term transactions of electricity to total electricity generation was 8.85 %* Of the total short-term transactions of electricity, in October, 2010
41.21% transacted through bilateral (through traders and term ahead contracts on p g ( g power exchanges and directly by distribution companies) 39.55% through Unscheduled Interchange (UI) and 19.24% through Power Exchanges

Top 5 trading licenses account for 85 8% in the total volume traded by all the trading licensees 85.8% licensees. Merchant Power Plants Significant increase in merchant power capacity expected to fuel the growth in power trading opportunities

*Source: CERC

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Overview of India Power Corporation Limited

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India Power Corporation Limited (IPCL)

Generation

Transmission

Distribution

Trading

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Evolution of IPCL
Incorporated as a Power Generation, Distribution, Transmission & Trading Company p y

2003

2006

Commissioned 10.4 MW Wind Power Plant in Karnataka, India

2007

Commissioned 24.8 MW Wind Power Plant in Gujarat, India

Set up India Power Corporation (Haldia) Limited to develop 450 MW Thermal 2008 Power plant in Haldia, West Bengal

2010

Acquisition of DPSC Ltd, one of the oldest Power utility companies in India

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Generation

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Power Generation Snapshot

GENERATION

India Power Corporation Ltd

Existing

DPSC Ltd.
Thermal Power
Existing 450 MW 42.2 MW
Dishergarh

Wind Power

Thermal Power

12 MW
Dishergarh

10.4 MW
Karnataka

24.8 MW
Gujarat

Haldia

1320 MW
Bihar

540 MW
Raghunathpur

1320 MW
Gujarat j

660 MW
Madhya Pradesh

INSTALLED CAPACITY 77.4 MW (42.2 MW THERMAL & 35.2 MW WIND)

CAPACITY ADDITION (Proposed) 4302 MW

TOTAL 4379.4 MW 16

Proposed Generation

Capacity Addition through IPCL 450 MW (3 X 150 MW) Thermal Power Plant 1320 MW (2 X 660MW) Thermal Power Plant 1320 MW (2 X 660MW) Thermal Power Plant 660 MW (1 X 660 MW) Thermal Power Plant

Location Haldia (WB) Bihar Gujarat Madhya Pradesh

Estimated Capex
INR C Crores US$ mn

2,475 7,260 7,260 3,630

538 1,578 1,578 789

Capacity Addition through DPSC 12 MW (1X12 MW) Thermal Power Plant 540 MW (2 X 270 MW) Thermal Power Plant

Location Dishergarh Raghunathpur

Estimated Capex
INR Crores US$ mn

66 2,970

14 646

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Exchange Rate INR46/USD

Project in Progress
450 MW (3 X 150 MW) Thermal Power Plant at Haldia, West Bengal.
Set up an SPV India Power Corporation (Haldia) Limited for the project execution Land for the project fully acquisitioned. p j y q Environmental clearance & coal linkage obtained. DCPL has been engaged as Owners Engineers. Bharat Forge/BHEL Appointed as EPC Contractor.

1320 MW (2 X 660MW) Thermal Power Plant at Bihar.

Approval for installing 1320 MW plant accorded by SIPB, Govt. of Bihar. Site identified at Sangrampur, Dist. Purbi Champaran, Bihar. MOU signed with Bihar State Electricity Board (BSEB) for their share of power and support. Water linkage obtained. Recommendation for coal linkage obtained. TOR presentation to MOEF approved. Power Purchase Agreement (PPA) signed with BSEB

1320 MW (2 X 660MW) Th Thermal P l Power Pl t at G j Plant t Gujarat. t

MOU signed with Govt. of Gujarat during Vibrant Gujarat. Land for the project identified at Maliya, Dist. Rajkot, Gujarat. Application for IC, water linkage submitted. Environmental I E i t l Impact A t Assessment (EIA) study i iti t d t t d initiated.
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Transmission & Distribution

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DPSC Limited
Established in the year 1919, DPSC Ltd. as a power utility company Main business of the company comprises of: y p p p p Transmission & distribution of electricity for public and private purposes within the provinces of West Bengal Generation and procurement of electrical energy Combined Distribution Capacity of 220 MVA
Receiving Station Dishergarh Receiving Station Luchipore Receiving Station JKN Nagar R Receiving St ti i i Station Bankola Receiving Station Seebpore Receiving Station Load 37.5 MVA 45 30 MVA MVA

13.5 MVA 45 MVA

Strong di t ib ti network with T&D l St distribution t k ith loss of only 3% against country average of 25%* f l i t t f Installed generation capacity of 42.2 MW
Generation Units Power Station

30 MW Coal Based Thermal Power Plant

(Under Operating Lease from ECL)

Chinakuri Power Station Dishergarh Power Station 20

12.2 MW Coal Based Thermal Power Plant

*Source: CEA

DPSC Limited Key Growth Drivers

License Area License area of 618 sq. km in high growth Industrial Belt in Asansol Raniganj area Multiple utilities in the area; still able maintain differentiation based on voltage level Strong growth in Industrial consumer consumption Industrial consumer in license area growing at a CAGR of 11% T&D Loss Low T&D loss of 3% Loss reduction of 0.37% achieved from 2009-10 to 2010-11 (till July10) Competitive Tariff Lower tariff compared to state run West Bengal State Electricity Distribution Corporation Ltd. (WBSEDCL)

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DPSC Limited The Road Ahead

Transmission & Distribution
Conversion & Augmentation of 11 kV transmission line system to 33 kV. Setting up of 220/33 kV Substation for interconnection with DVC and regional grid. Construction of 33/11 kV substation at Feeder Road and Ikra at Dishergarh. Augmenting distribution network, cutting transmission losses and enhancing reliability network reliability. Continuous ongoing Modernisation through addition of generating capacity. Building, operating and maintaining power plants and distribution network in new areas.

Generation
Installation of 1X12 MW Thermal Power Plant at the existing plant at Dishergarh, West Bengal 2 X 270 MW Thermal Power Plant at Raghunathpur, West Bengal

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India Power Corporation Limited

Plot No. X 1, 2 & 3, Block EP Sector V Salt Lake City EP, V, Kolkata 700 091
Tel:+91 33 2357 4308/09/10 Fax:+91 33 2357 5678 www.ipclindia.com
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